Thursday, May 17, 2018

New Demolition Contractors Wanted In Detroit

Maybe, just maybe, this time bid rigging will not be the issue.
Not my artwork

In the spirit of fuchsia...

Detroit contractor faces suspension after demolishing wrong house

Detroit's largest contractor within its demolition program is facing suspension from the federally funded program after it tore down the wrong home, the Free Press has learned.

The entire program is under federal investigation, so I shall safely assume this event is not a surprise to anyone in SIGTARP or the FBI.

Officials confirmed Wednesday that the Detroit-based Adamo Group could be suspended for 90 days.

The company has seven days to appeal the suspension.

Tune in next week for another exciting adventure in finding out with whom Adamo Group actually entered into a contractual agreement, or if it was one of those "meeting of the minds" wink and a handshake with that "ORGANIZATION" since I cannot recall signing any contract with them before Bill Schuette dissolved my Detroit Land Bank Authority, L.L.C., having the assumed name of DLBA from LARA.  I think this may be a Defense Logistic Agency issue.

In an early statement to the Free Press, the city initially said the suspension was already in effect. The city later amended its statement to say, "If they do not challenge it within 7 days, Adamo will be suspended from the bidding process on all demolitions for the 90 days."

"Any time one of our demolition contractors commits a serious violation, we act immediately to address it," Detroit Building Authority Special Projects Director Brian Farkas said in a statement to the Free Press. "In this instance, an Adamo Construction crew informed us that it had mistakenly knocked down a Land Bank-owned house at 5792 Holcomb that was also in the demolition pipeline but not the house under contract for demolition.  The property it should have knocked down was next door."

Detroit Building Authority is a very special place...very special.  I recall a time one of the staff pulled me over to the side and clued me up to cross check the plot numbers on the deeds.  I did.  It was not pretty.  Actually, I remember this one time the Detroit Land Bank Authority sold a property with the wrong address and then got an attitude when they were asked to correct the deed.  Eventually, the deed was amended, but it was still wrong.  Gotta love those "Legal Geniuses" (trademark pending).

According to Detroit Building Authority field notes obtained by the Free Press, Adamo was under contract to demolish a home located at 5798 Holcomb, which was abated. The house that was actually demolished was not abated, raising concerns about potential asbestos exposure. It's not immediately clear whether asbestos was present at the property.

Also read: 
A city official told the Free Press the building authority has notified the Michigan Department of Environmental Quality. The MDEQ can hold both contractors and the property owner equally responsible for potential asbestos violations.

MDEQ has a long and illustrious history of sucking.

"They found that they demolished the wrong house after contacting BSEED (Buildings, Safety) for an open hole inspection," the notes say. "BSEED inspector questioned if it was the right location, which led to discovery of (the) wrong house demolished."

Farkas called the violation "unacceptable" and said: "This is the same action we take for any company based on an infraction of this nature. Adamo has the right to appeal our decision as a part of our due process."

BSEED is getting its act together, but it will take time.

According to an April report from SIGTARP — a federal watchdog agency — Adamo has received more than $35 million of the $258 million awarded to Detroit in Hardest Hit funds, the largest amount of any contractor within the program.

Who signed the check?

The Hardest Hit Fund was originally created as part of the Troubled Asset Relief Program during the last recession to pay for programs to help keep people in their homes, with Michigan initially getting an allotment of $498 million. The program was expanded over the years to allow funding – with federal approval – to be used to pay for tearing down abandoned blighted structures as a way to stabilize neighborhoods.

Farkas said Adamo has completed more than 3,200 demolitions without any Michigan Department of Environmental Quality violations.

In a violation letter obtained by the Free Press, Detroit Building Authority Deputy Director Timothy Palazzolo notified Adamo of the impending suspension on May 10, saying it has the right to appeal.
Mayor Mike Duggan made waves shortly after he was elected in 2013 by embarking on an effort to tear down 40,000 blighted buildings in neighborhoods. City officials have said nearly 14,000 homes have been demolished so far.

The suspension comes nine months after two other contractors— Direct Construction Services and Rickman Enterprise Group — were suspended for submitting doctored photographs of sidewalk repairs at work sites in an attempt to get paid.

Direct Construction Services turned in five doctored photographs, the Free Press previously reported, and is suspended from the program until 2020 or when the demolition program's federal funding ends, whichever is later.

All they have to do is become a Corporate Shape Shifter and file for a new corporate name.

Rickman Enterprise Group officials at the time blamed the falsified photo on an “inside joke” by an unidentified worker who accidentally sent it to the Detroit Land Bank Authority. Rickman initially was suspended from bidding and contracting for 90 days and has since been allowed to bid in the program again.

Riiiiight.....

The Land Bank requires demolition contractors to submit sidewalk photos with invoices for payment to ensure sidewalks aren't left destroyed at work sites where vacant homes are being taken down.

How does the Land Bank issue payments, since it never incorporated?

Since June 2016, 13 contractors have been suspended for a variety of reasons, including mishandling asbestos and leaving an open hole at a demolition site for more than 30 days, the Free Press has previously reported.

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